BT and Virgin prolapse with anger over movie ruling

BT and Virgin Media are spitting feathers after the Competition Commission confirmed that they wouldn't be intervening in the pay-TV market for premium films, which was obviously good news for BSkyB.

BT said the decision "flies in the face of BT's experience as a retailer and the experience of other retailers", with Virgin Media chipping in with a weak wristed "extremely disappointing".

The commission said that Sky's position "does not adversely affect competition", which wrapped up a huge two-year inquiry and looks like something of a turnaround. Up 'til now, it looked like the regulator agreed with BT and Virgin.

BT and Virgin have been arguing that the wholesale price which Sky charged them to carry its Sky Movies channels was far too high, but the regulator said that sites such as NetFlix and LoveFilm has changed the market, and therefore, introduced more competition.

A Sky spokesman welcomed the ruling, saying: "Sky considers there to be overwhelming evidence that UK consumers are well served by strong competition between a growing number of TV providers."